Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
More View more
Real Time News
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: US 500: 1.33% Wall Street: 0.82% France 40: -0.07% Germany 30: -0.10% FTSE 100: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/aeuc1S326s
  • Hey traders! What is driving the markets today? Find out from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/yC5XVJC5fY
  • Canadian #Dollar Outlook: $USDCAD Five Weeks Down, Five Month Low - https://t.co/O1op1wYcdT https://t.co/GaYTjFmjtc
  • White House Economic Advisor Larry Kudlow: -Data suggests economy only needs 'targeted money' -Thinks economy is entering a 'self-sustaining recovery' -Trump 'completely opposes' bailing out states $USD $TNX $SPX
  • FTSE 100 IG Client Sentiment: Our data shows traders are now net-short FTSE 100 for the first time since Jul 20, 2020 when FTSE 100 traded near 6,264.90. A contrarian view of crowd sentiment points to FTSE 100 strength. https://www.dailyfx.com/sentiment https://t.co/iX4wB4HOah
  • Fed's Rosengren says the #Fed has been clear that negative interest rates are unlikely to be used
  • Back from vacation and back on schedule Going live for today's stock market webinar in 10 minutes - https://t.co/rmwDABTiN2 https://t.co/oC3Igu2muT
  • I've seen three more headlines today suggesting that there is significant money still on the sidelined despite the climb in markets. Is the assumption that some small tech milestone or new headline would excite investors to pay record amounts to get into a stretched market?
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.57% 🇪🇺EUR: 0.41% 🇨🇦CAD: 0.40% 🇳🇿NZD: 0.14% 🇬🇧GBP: -0.16% 🇯🇵JPY: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/3mZjwCXcwc
Forex: USD Correction Underway- Outlook Remains Bullish on Fed Policy

Forex: USD Correction Underway- Outlook Remains Bullish on Fed Policy

2013-01-08 16:40:00
David Song, Strategist





Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index






Forex_USD_Correction_Underway-_Outlook_Remains_Bullish_on_Fed_Policy_body_ScreenShot143.png, Forex: USD Correction Underway- Outlook Remains Bullish on Fed Policy

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.09 percent higher from the open after moving 79 percent of its average true range, and the reserve currency may continue to push higher throughout the North American trade as market participants scale back their appetite for risk. Indeed, the bullish sentiment surrounding the dollar looks poised to gather pace this year amid the shift in the policy outlook, and we should see the Fed slowly move away from its easing cycle as the world’s largest economy gets on a more sustainable path. However, as the 30-minute relative strength index approaches overbought territory, we should see a short-term correction pan out in the days ahead, and the index may approach the 9,950 figure to test for trendline support.

Forex_USD_Correction_Underway-_Outlook_Remains_Bullish_on_Fed_Policy_body_ScreenShot144.png, Forex: USD Correction Underway- Outlook Remains Bullish on Fed Policy

Indeed, FOMC board member Janet Yellen expressed hopes of exiting ‘the period of accommodative monetary policy’ as the central bank continues to rely on its non-standard measures, while Philadelphia Fed President Charles Plosser said the committee needs to preserve price stability amid the ballooning balance sheet. As the economic recovery gradually gathers pace, it seems as though a growing number of Fed officials are looking to switch gears in 2013, and we may see the central bank start to discuss a tentative exit strategy later this year as growth and inflation picks up. As the fundamental outlook for the U.S. improves, we should see the index maintain the upward trend carried over from the previous year, but we are looking for a near-term pullback as the relative strength index falls back from a high of 71.

Forex_USD_Correction_Underway-_Outlook_Remains_Bullish_on_Fed_Policy_body_ScreenShot148.png, Forex: USD Correction Underway- Outlook Remains Bullish on Fed Policy

The greenback advanced against three of the four components, led by a 0.47 percent decline in the British Pound, while the Japanese Yen bucked the trend as the low-yielding currency gained 0.83 percent against its U.S. counterpart. As Japan looks to implement a JPY 5.2 trillion public works project, the expansion in fiscal policy may take pressure off of the Bank of Japan (BoJ) to adopt an unlimited asset purchase program, and the pull back from 88.40 may turn into a larger correction as Governor Masaaki Shirakawa looks to preserve the central bank’s independence. As the relative strength index on the USDJPY looks poised to push back below the 70 figure, the move should provide a more meaningful downside move in the exchange rate, but we may see a shallow correction as Japanese policy makers push the BoJ to adopt a 2 percent target for inflation.

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.